What fee must a Brueggers Bagels franchisee pay to renew their franchise agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or License Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 3.1 of the Franchise Agreement; Section 2.1 of the License Agreement; Paragraph 2 of Franchise Agreement Addendum | The term under the Franchise Agreement is the earlier of 10 years from the date the Bakery opens, or 11 years from the effective date of the agreement; the term under the License Agreement is five years from the effective date of the agreement, and 10 years for all airport locations. |
| b. Renewal or extension of the term | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Provided we are still franchising and have not made a decision to withdraw from the geographic market of the Bakery, and if you are in good standing, you can request a successor franchise agreement for one additional 10-year term. Under the License Agreement: two additional five year terms, and one additional 10-year term for airport locations. |
| c. Requirements for you to renew or extend | Section 3.2 of the Franchise Agreement; Section 2.2 of the License Agreement | Written notice, sign successor agreement, remodel, sign general release, and pay one-half of the then-current franchise fee. The Successor Franchise Agreement may contain terms that are materially different from your expiring Franchise Agreement, such as different fee requirements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees seeking to renew their franchise agreement must meet certain requirements, including paying a renewal fee. Specifically, to renew the franchise agreement for an additional 10-year term, a franchisee must provide written notice, sign a successor agreement, complete any required remodeling, sign a general release, and pay a renewal fee equal to one-half of the then-current franchise fee.
It is important to note that the terms of the Successor Franchise Agreement may differ significantly from the original agreement. These differences can include changes to fee requirements, which could impact the franchisee's financial obligations.
This renewal process is fairly standard in the franchise industry, where franchisors often require a renewal fee to grant an additional term. The fee helps to cover the franchisor's administrative costs and ensures the franchisee's continued commitment to the brand. Prospective Brueggers Bagels franchisees should carefully consider these renewal terms and potential changes in fee structures when evaluating the long-term investment.